In all conventional sintered PM products, the pores present are of two types, primary and secondary. Primary pores forming during compaction and latter during sintering, due to penetration of formed liquid through the matrix grain boundary. Effect of carbon addition on diffusion of Cu in SH737-2Cu system was investigated. After compaction and transient liquid phase sintering at and , samples were characterized for densification, showing rise in sintering density and reduction in swelling on carbon addition. Quantitative microstructural characterization (shape factor and pore size) revealed bimodal distribution for 0% carbon, more rounded pores for 0.9% carbon and higher sintering temperature, and pore coarsening at higher sintering temperature.